Unions warned that an economic Plan B is more urgent than ever after the coalition's economic plans started to come apart at the seams this week with more poor growth figures.
Len McCluskey General Secretary of Unite the union says ‘‘With every passing month, it is becoming clearer and clearer that the government's monetarist and fiscal policies are not delivering the level of growth necessary for the British economy to recover…For example, UK manufacturing sector growth fell to its lowest rate for 21 months in June as export orders slumped….What we need to remember is that Britain stayed out of the Eurozone to give it more freedom of economic action many of the problems we face are home-grown and can be laid directly at the door of George Osborne’’.
PCS leader Mark Serwotka says the government should be creating jobs so people have money to spend ‘‘Instead of building confidence the government is spreading misery and anxiety and spending money on making people redundant rather than providing quality public services…Spending in the wider economy is also hit because millions of public-sector workers are enduring a pay freeze while inflation is high and the cost of household necessities like energy are soaring’’.
GMB union leader Paul Kenny said ‘‘George Osborne is blind to the fact that the economy is stalling as a direct result of his policies. His impersonation of Marie Antoinette has got to stop as all the cake shops shut’’.
Len McCluskey is calling for a rescue package which includes:
Boosting manufacturing capacity - starting by reversing the Bombardier decision and giving the train carriage contract to the Derby plant, coupled with an urgent review of government procurement policy
Reforming the taxation system, so that the rich and City elite pay more
Closing the tax avoidance loopholes that are costing the Exchequer billions in lost revenue
Ordering the banks, especially those owned by the taxpayer, to relax their lending policies to help industry obtain money to generate new jobs
Creating a Strategic Investment Bank
Radically rethinking the budget deficit strategy that is hitting public services and the NHS and slashing the public-sector workforce
Scrapping the private finance initiatives (PFIs) which are adding enormously to the bill for new hospitals, schools and libraries